Investors 'in the know' tiptoe around compliance?

    

A NEW study claims investors 'in the know' tiptoe around compliance requirements to generate wealth using insider trading tips.

The joint New York University and McGill University report raises questions for stock trading in 25-per-cent of Merger & Acquisition activity across a sixteen year period.

The report's authors claim the Securities Exchange Commission has litigated less than five per-cent of suspicious stock trading within their study's sample of 1,859 M&A announcements.

The authors maintain insider trading is so pervasive in such deals that they say the odds of the personal dealing “arising out of chance” were “about three in a trillion.”

Wall Street's Investor Responsibility Research Center Institute funded the study - Patrick Augustin at McGill with Menachem Brenner and Marti G. Subrahmanyam at N.Y.U. - which the trio started in 2012.

Sources:

IRRCi. Informed Options Trading prior to M&A Announcements: Insider Trading?

New York Times DealBook

 

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